Japan’s Kato wants to boost support for low-income households

Source Fxstreet

Japan's Finance Minister Katsunobu Kato said on Thursday that he will unveil an economic package with a focus on price relief and growth and will discuss assistance for low-income households.

Key quotes

Focus on price relief.

Measures to boost economic growth.

Assistance for low-income household.. 

Market reaction  

At the time of writing, USD/JPY was down 0.24% on the day at 146.57.
 

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Dogecoin Price Eyes 58% Move Upward If This Major Level Is BrokenThe Dogecoin price is once again in the spotlight, stirring up bullish excitement as a crypto analyst predicts a potential 58% upside move in the near term.
Author  Bitcoinist
Yesterday 02: 40
The Dogecoin price is once again in the spotlight, stirring up bullish excitement as a crypto analyst predicts a potential 58% upside move in the near term.
placeholder
Gold price recovers further from one-month low amid a weaker USDGold price (XAU/USD) is building on the previous day's goodish recovery from the $3,248-3,247 region or a one-month low and gaining positive traction for the second successive day on Tuesday.
Author  FXStreet
Yesterday 05: 46
Gold price (XAU/USD) is building on the previous day's goodish recovery from the $3,248-3,247 region or a one-month low and gaining positive traction for the second successive day on Tuesday.
placeholder
Eurozone June Inflation Preview: EUR/USD Expected to Rise Initially, Then DeclineOn 1 July 2025, the Eurozone will release its June inflation data.
Author  TradingKey
23 hours ago
On 1 July 2025, the Eurozone will release its June inflation data.
placeholder
Bitcoin Price Forecast: BTC slips below $107,000 even as exchange reserves hit 6-year low Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Author  FXStreet
20 hours ago
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
goTop
quote